nuary 1, 2017. The annual reporting period ends December 31. The trial balance on January 1, 2018, was as follows (the amounts are rounded to thousands of dollars to simplify):
Account Titles Debit Credit
Cash $ 6
Accounts Receivable 2
Supplies 2
Equipment 10
Accumulated Depreciation $3
Software 8
Accumulated Amortization 3
Accounts Payable 6
Notes Payable (short-term) 0
Salaries and Wages Payable 0
Interest Payable 0
Income Taxes Payable 0
Deferred Revenue 0
Common Stock 13
Retained Earnings 3
Service Revenue 0
Depreciation Expense 0
Amortization Expense 0
Salaries and Wages Expense 0
Supplies Expense 0
Interest Expense 0
Income Tax Expense 0
Totals $28 $28
Transactions during 2018 (summarized in thousands of dollars) follow:
Borrowed $13 cash on July 1, 2018, signing a six-month note payable.
Purchased equipment for $16 cash on July 2, 2018.
Issued additional shares of common stock for $6 on July 3.
Purchased software on July 4, $2 cash.
Purchased supplies on July 5 on account for future use, $8.
Recorded revenues on December 6 of $47, including $9 on credit and $38 received in cash.
Recognized salaries and wages expense on December 7 of $21; paid in cash.
Collected accounts receivable on December 8, $8.
Paid accounts payable on December 9, $9.
Received a $2 cash deposit on December 10 from a hospital for a contract to start January 5, 2019.
Data for adjusting journal entries on December 31:
Amortization for 2018, $3.
Supplies of $2 were counted on December 31, 2018.
Depreciation for 2018, $3.
Accrued interest of $1 on notes payable.
Salaries and wages incurred but not yet paid or recorded, $4.
Income tax expense for 2018 was $3 and will be paid in 2019.
Record journal entries for transactions (a) through (j).
Cash 13
Notes-payable (short term) 13
Equipment 16
Cash 16
Cash 6
Common Stock 6
Software 2
Cash 2
Supplies 8
Accounts Payable 8
Accounts Receivable 9
Cash 38
Service Revenue 47
Salaries and Wages Expense 21
Cash 21
Cash 8
Accounts Receivable 8
Accounts Payable 9
Cash 9
Cash 2
Deferred Revenue 2
Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions (a)-(j), adjusting entries (k)-(p), and closing entry.
Prepare an unadjusted trial balance and a trial balance.
